On March 1, Sue transfers stock worth $20,000 to Frank. How long must Sue live to avoid inclusion of the $20,000 of stock in her gross estate?

Question

Quizplus · Accepted Answer

For federal estate tax purposes, there is no specific minimum time period that Sue must live after transferring the stock to avoid its inclusion in her gross estate. The key factor is that Sue must be alive at the time of the transfer. Once the transfer is complete, and assuming it is a complete and irrevocable transfer, the stock is no longer part of Sue's estate, regardless of how soon she may pass away after the transfer.

On March 1, Sue Transfers Stock Worth $20,000 to Frank